Empower and Milliman announced a definitive agreement under which Empower will acquire Milliman’s retirement administration business. The transaction is valued at $340 million and is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions.
Milliman will retain its retirement and healthcare actuarial consulting business. Following the close, Milliman and Empower expect to enter a strategic partnership tied to actuarial services and defined benefit plan administration.
The acquisition will expand Empower’s capabilities in the defined benefit market. Empower said the deal supports its strategy of delivering integrated workplace benefits solutions that help employers support employees throughout their financial lives.
The transaction will add specialized defined benefit administration expertise to Empower’s existing retirement, wealth management, stock plan, and consumer-directed healthcare offerings. The combined capabilities are intended to create a more comprehensive suite of workplace financial solutions for employers, plan sponsors, advisors, and individual investors.
More than 800 employees from Milliman’s retirement administration business will join Empower. These employees will support retirement and administration services for financial professionals, plan sponsors, and participants.
At closing, Empower expects to acquire about 400 defined benefit plans representing approximately 790,000 plan participants and about $80 billion in assets under administration. Empower also expects to acquire more than 1,100 defined contribution plans representing about 750,000 participants and more than $50 billion in client assets.
The deal also includes 100 health and welfare administration clients with approximately 100,000 plan participants. Empower said the added capabilities will help the company serve the evolving needs of the 20 million investors it supports, the 93,000 retirement plan sponsors it serves, and the advisors who work with clients on financial decisions.
Defined benefit plans continue to play a role in the U.S. retirement system, particularly among governmental employers, professional services firms, healthcare organizations, and closely held businesses. Empower noted that modern plan designs, such as cash balance plans, have grown in popularity as employers seek additional tools to improve retirement preparedness and workforce planning.
The acquisition reflects Empower’s broader strategy to build a workplace solutions ecosystem that connects retirement savings, retirement income, equity compensation, healthcare savings, and wealth management. The company said combining these capabilities can help employers deliver more holistic financial wellness programs.
The deal follows several strategic acquisitions completed by Empower over the past decade. These include Personal Capital, MassMutual’s retirement business, Prudential’s full-service retirement business, and Plan Management Corp., also known as OptionTrax.
Eversheds Sutherland is serving as legal counsel to Empower. K&L Gates is serving as legal counsel to Milliman, and Chesky Partners is serving as Milliman’s exclusive financial advisor.
KEY QUOTES:
“Retirement security today requires more than savings alone. It depends on wealth accumulation, healthcare preparedness and reliable income throughout retirement. The addition of Milliman’s defined benefit capabilities strengthens our ability to serve the evolving needs of the 20 million investors we support, the 93,000 retirement plan sponsors we serve and the financial advisors who help clients navigate increasingly complex financial decisions. This acquisition represents another important step in Empower’s vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence.”
Edmund F. Murphy III, President and CEO of Empower
“We are proud of the business we have built and the relationships we have established with our clients. As we considered the next chapter for this business, it was important to find a partner with scale, commitment to the future of retirement and benefits administration, and the long-term vision necessary to continue serving our broad range of clients. We chose Empower because of its leadership position in retirement services and its ability to offer an enhanced range of services to our customers while providing excellent career opportunities for our employees. This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses.”
Dermot Corry, President and CEO of Milliman
